Why is thorough tenant referencing so important for landlord and letting agents?

Why is thorough tenant referencing so important for landlord and letting agents?

Why is thorough tenant referencing so important for landlord and letting agents?

Adam Joseph, CEO, The Happy Tenant Company

Carrying out thorough tenant referencing is one of the most important processes a landlord or letting agent should undertake when choosing to let a property because it mitigates the risks from loss of income and damage to a property.

Professional tenant referencing and Right to Rent checks confirm a tenant is who they say they are, has the financial means to pay the rent on time every month, has permission to live in the UK and ultimately can be entrusted with a landlord’s greatest asset, his/her property.

Of course, even the most detailed referencing is not a guarantee, but having information on a person’s identity, their credit history, any possible County Court Judgements, employment references and their track record as a tenant from previous landlords, is a good place for landlords and letting agents to start minimising the risk and filtering out possible ‘bad tenants’.

New landlords, or those concerned about carrying out referencing and checking the authenticity of the information provided, should seek professional help from a company that can produce a detailed report, enabling the landlord to make an informed decision on the suitability of the tenant.

There is a danger that some landlords and letting agents can be too eager to get tenants approved, so an open mind is important. Landlords who use an asset management company, where fees only come from management not letting the property, have the reassurance that the advice they receive is unbiased and focused on the best interest of their investment.

In much the same way mortgage lenders are stringent with who and how much they lend to ensure borrowers are able to meet repayments, landlords should act in a similar fashion to protect their investment and income streams.